Purpose
This paper aims to make an attempt to identify the determinants of dividend policy by analyzing 125 real estate companies, which are selected on the basis of consistent dividend distribution throughout the study period. Most of these companies either listed with Bombay Stock Exchange or National Stock Exchange.
Design/methodology/approach
This paper applies three alternative methods to verify and validate the results obtained from each other method, namely, fully modified ordinary least square (FMOLS), dynamic ordinary least square and generalized method of moments (GMM). Data collected of the selected companies’ post-recession period i.e. 2009-2017. The selected companies have age either 5 years old or more when data are retrieved from the above-mentioned sources. Due to much volatility in the recession period in the real estate firms at the global level, no data have been taken of the firms before March 2009. Moreover, for arriving at good analysis and an adequate number of observations for the study more recent data have been taken.
Findings
Empirical findings of this research paper depict that firm previous dividend, firm risk and liquidity are strong predictors of future dividend payout ratios (DPRs). The results indicate that firm risk as measured through price-earnings ratio (PE ratio) has a positive association with a DPR of selected real estate firms. Lagged DPR used in the GMM test as an exogenous variable is showing positive significant association with DPR. Firm’s growth is found significant in FMOLS and GMM techniques. On the other firm’s size is found significant according to cointegration techniques.
Practical implications
The present study shall be useful to different stakeholders of real estate companies. Various significant determinants as identified can be used by management for designing optimum dividend policy and providing maximum benefits to existing shareholders. Similarly existing and prospective shareholders may predict the future payment of dividend and accordingly they may take investment decisions in these firms, as the future fund’s requirement of a firm depends upon dividend payment and retention ratio.
Originality/value
As per the authors’ knowledge, there is no single study carried in the post-recession period to predict determinants of dividend policy of real estate sector using three alternatives of methods to verify and validate the results obtained from each other method. The study is carried out after exploring determinant from a diverse range of period of studies (oldest one to latest one).
Determinants of behaviour of working capital requirements of BSE listed companies: An empirical study using co-integration techniques and generalised method of moments,
The present study examines how successful we are in achieving financial inclusiveness, investigating the influence of the drivers of financial inclusion (FI), financial literacy, and financial initiatives on sustainable growth. The drivers of FI considered are digitalization, technology, and usage. This study proceeds with a difference and investigates the impact of the drivers on sustainable growth through the mediation of financial literacy. The basic purpose is to understand whether mediation assists in enhancing the impact of the drivers of FI on sustainable growth. Sustainable growth is measured by knowing customers’ perceptions regarding FI success through the achievement of the SDGs, viz., SDGs 1, 3, 5, 8, 9, 10, 11, and 17, especially related to poverty alleviation; removing gender inequality; and promoting industrial growth. The study uses PLS-SEM modeling to investigate the impact of the drivers of FI, financial literacy, and financial initiatives on sustainable growth. The results highlight that usage, digitalization, and FinTech emerged as significant drivers of FI. The study assesses the direct impact of the drivers of FI on sustainable growth and the indirect effect through the mediation of financial literacy. This is indicative of the importance of financial literacy in accentuating the impact of the drivers on sustainable growth. However, financial initiatives positively impact sustainable growth in the northern region of India as well.
The study aims to investigate the impact of intellectual capital (I.C) on the sustainable financial performance (F.P) of private sector banks (PSBs) in India. Data were gathered from 17 banks between 2010 and 2021 using Prowessiq (CMIE) and their annual financial reports. To evaluate the ways in which intellectual capital (I.C) affects sustainable financial performance (F.P), the modified value-added intellectual coefficient (MVAIC) methodology was applied. The human capital (HC), capital employed (CE), structural capital (SC), and relational capital (RC) were utilized as independent factors together with three control variables (leverage, size, and GDP), the return on capital employed (ROCE), and return on equity (ROE), which were used as dependent variables. The results show that RC and SC have a clear, statistically significant relationship with ROCE. Additionally, HC and CE have a direct positive and statistically significant effect on ROE. Overall, all of the I.C. components have significant impacts in increasing the efficiency and profitability of Indian private sector banks. Furthermore, the total intellectual capital (MVAIC) exhibits a statistically significant negative association with ROE but a substantial positive association with ROCE. It is advised that policymakers and managers focus more on the various I.C components because they are the key engines generating value for the banks in order to preserve a more sustainable F.P.
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